14 December 2022
If you are covering the government UK house price index, please see the following comment from Karen Noye mortgage expert at Quilter:
"The government’s house price index paints a somewhat more rosy picture of the housing market than the likes of Halifax or Nationwide. Today’s figures show that UK house prices have continued to rise, with the annual percentage change reaching 12.6% in the year to October 2022. This is up from 9.9% in the year to September 2022. However, the increase in annual house price percentage should be taken with a pinch of salt as the rise can be attributed to a decrease in average UK house prices between September and October 2021, due to changes to Stamp Duty Land Tax, which artificially pumped prices up last year.
"It's worth noting that house price growth is starting to slow down, with new buyer enquiries declining for the sixth consecutive month. Additionally, mortgage approvals for house purchases have decreased, indicating that prospective homebuyers may be becoming more cautious. Just yesterday, we saw the Bank of England warn that mortgages are going to get considerably more expensive next year for millions. This will take some of the froth out the market as many people will choose to batten down the hatches and others will be forced into putting their homes on the market in a bid to downsize, unlock cash and achieve lower monthly bills.
"The housing market in the short to medium term is likely to suffer somewhat however with so little stock around it won’t take long for prices to start to rise again after a projected dip in the new year.
"If you are struggling to make your mortgage payments, there are a few steps you can take to try to resolve the situation. Firstly, contact your lender as soon as possible to explain your situation and discuss your options. They may be able to offer you a payment holiday or a different payment plan to help you catch up on your payments. A mortgage payment holiday will temporarily suspend your mortgage payments for a set period of time. Keep in mind that interest will still accrue during this time, so you will need to pay it back later.
"You may also want to look into government schemes and assistance programs that may be able to help you. For example, the government's Support for Mortgage Interest (SMI) scheme provides financial assistance to help cover the interest on your mortgage if you are on a low income. You may also want to talk to a mortgage adviser or your lender and explore the possibility of refinancing your mortgage to get a lower interest rate or longer repayment term. This can help reduce your monthly payments and make them more manageable. If you are unable to resolve the situation with your lender, you may need to consider other options, such as selling your property but don’t make knee jerk decisions until you have exhausted all your avenues of help.
"Communication with your lender is key and be honest about your situation. They may be able to offer you support and guidance to help you overcome your financial difficulties."
